KT&G announced it will cancel all 10.9 million treasury shares it holds, valued at approximately 1.85 trillion won ($1.3 billion), with the burn scheduled for April 23. The decision, approved by the board, follows recent changes to Korea’s commercial law and is aimed at enhancing shareholder value.
The move aligns with the company’s broader capital return strategy, which also includes raising its annual dividend to 6,000 won ($4.08) per share.
KT&G is developing a smokeless nicotine product designed for oral absorption and is preparing a pilot production line for research and development in South Korea, according to local media outlet The Elec. The pilot equipment will be supplied by PNT, a manufacturer known for roll-to-roll battery and display production systems. KT&G said the project is in an early stage and that plans for domestic or international commercialization of nicotine pouches or related products have not been finalized.
The move aligns with growing global competition in nicotine pouches, led by brands such as Zyn and VELO. KT&G last year participated with Altria in the acquisition of Scandinavian pouch companies ASF AB and ASF AS. In South Korea, however, nicotine pouches currently lack formal sales authorization under the Tobacco Business Act, and products are primarily obtained through overseas purchases or unofficial channels, meaning any domestic launch would be dependent on regulatory changes.
KT&G CEO Bang Kyung-man said the company will maintain a stable growth trajectory despite headwinds from protectionist trade policies and high exchange rates. Speaking at the annual shareholders’ meeting in Daejeon, Bang emphasized strengthening profitability and efficiency on the foundation of existing growth.
KT&G plans to enhance the profit structure of its overseas cigarette business through country-specific pricing strategies and full-scale operation of its “local complete production system.” The company also aims to boost competitiveness in the NGP (next-generation products) segment, including cigarette-type e-cigarettes, by accelerating R&D-driven innovation and leveraging global partnerships.
Bang highlighted a commitment to shareholder returns, including dividend expansion and share buybacks, and reaffirmed KT&G’s role as a leading company in South Korea’s valuation industry. At the meeting, shareholders approved the 39th financial statements, amendments to the articles of incorporation, changes to director compensation, appointments of outside directors and audit committee members, and the treasury share disposal plan.
KT&G announced today (March 24) that its super-slim cigarette brand Esse saw its overseas cigarette revenue jump 29.4% year-on-year to 1.9 trillion won ($1.3 billion) last year, becoming the “first Korean cigarette brand to surpass 1 trillion won in overseas sales.” KT&G also said it was the first time its global cigarette sales exceeded its domestic revenue.
According to the company, Esse, now sold in more than 90 countries, has built its growth on differentiated slim designs and localized market strategies. The brand has recorded cumulative global sales of over 1 trillion cigarettes and currently accounts for “roughly one-third of the global super-slim segment, ranking as the leading brand in that category.”
KT&G has announced the integration of its cigarette-type e-cigarette “Lil Able” stick lineup under a unified “AIIM” brand, in a move aimed at improving product clarity and consumer accessibility. The consolidation brings together existing variants — including Real, Granula, and Vaporstick — into a more streamlined structure, enabling users to more easily navigate and select products within the portfolio.
Under the reorganization, a total of 11 products will be incorporated into the AIIM range, complemented by four “RAIIM” variants focused on delivering a more natural tobacco flavor, bringing the total Lil Able-compatible lineup to 15 products. KT&G said the transition will be rolled out gradually as existing inventory is depleted, adding that the brand integration reflects its strategy to align product offerings more closely with evolving consumer preferences and simplify the user experience.
KT&G said it will introduce its latest cigarette-type heated tobacco device, the Reel Able 3.0, tomorrow (Feb. 28) at four locations in the Seoul metropolitan area. The new model features significantly reduced charging and preheating times, with a full charge completed in about one hour — half the time of its predecessor — and a preheating time shortened by 10 seconds.
The device retains key Reel Able functions such as pause during use, selectable usage modes and support for three consecutive sessions. For the first time in the series, KT&G has applied metal materials and curved edges to enhance grip and design, alongside an AMOLED display showing remaining usage counts and mode settings. Reel Able 3.0 will debut in four colors, with Oud Gray and Platinum Silver released first at a retail price of 68,000 won ($47). The company said the launch supports its strategy to reinforce leadership in the heated tobacco segment through differentiated product upgrades.
KT&G said it will cancel 10.9 million treasury shares worth approximately 2 trillion won ($1.4 billion), becoming the first company to act under South Korea’s newly revised Commercial Act requiring the retirement of treasury stock within set deadlines. The board-approved cancellation, equal to about 9.5% of outstanding shares, will be put to shareholders on March 26 alongside bylaw amendments to strengthen governance, including provisions for electronic shareholder meetings and expanded audit committee representation. The move builds on KT&G’s 3.7 trillion won ($2.6 billion) shareholder return program launched in 2024, under which the company has already retired 19.2 million shares and returned more than 2.3 trillion won ($1.6 billion) through dividends and buybacks.
In an interview with The Korea Times, KT&G credited expanding overseas operations with its recent financial success, with foreign sales passing domestic for the first time in the company’s history. The South Korean company has seen rapid international growth, with foreign subsidiary revenue rising 245% since 2020 and overseas cigarette volumes more than doubling. KT&G reported record annual sales of 6.5 trillion won ($4.5 billion) and operating profit of 1.35 trillion won in 2025.
Supported by 16 marketing and manufacturing hubs and five global production plants, KT&G said it plans to continue strengthening its global footprint and product portfolio, as investor interest grows and the company’s market value climbs.
“Our overseas bases were not established for short-term sales gains,” a KT&G official said. “They were built to create a sustainable global business structure for the long term, taking into account specific consumer demands across different regions.”
KT&G reported record financial performance for 2025, with fourth-quarter consolidated revenue rising 10.1% year over year to KRW 1.7 trillion ($1.2 billion) and operating profit increasing 17.1% to KRW 248.8 billion ($169.2 million). In financials released today (Feb. 5), the company said full-year revenue grew 11.4% to a record KRW 6.58 trillion ($4.5 billion), while operating profit climbed 13.5% to KRW 1.4 trillion ($918 million), or KRW 1.4 trillion ($965.6 million) on an adjusted basis excluding one-time labor costs. The company attributed the results to structural reforms and global competitiveness initiatives implemented under CEO Kyung-man Bang, with its global cigarette business delivering record revenue, volume, and operating profit. International cigarette revenue rose 14.6% to KRW 1.9 trillion ($1.3 billion) and, for the first time, accounted for 54.1% of total cigarette revenue, supported by volume growth and strategic pricing actions.
KT&G’s next-generation product (NGP) segment also expanded, with revenue increasing 13.5% to KRW 890.1 billion ($605 million) and stick volumes reaching 14.8 billion units. The company signaled a broader NGP strategy beyond heated tobacco, including portfolio diversification into nicotine pouches following its acquisition of Another Snus Factory. Management emphasized that NGP expansion is intended to complement core combustible operations while strengthening long-term tobacco category competitiveness across domestic and international markets.
Looking ahead, KT&G outlined 2026 growth targets supported by a KRW 2.4 trillion ($1.6 billion) capital investment program aimed at expanding global manufacturing capacity, including new facilities in Kazakhstan and Indonesia. The company expects these investments to support cost reductions, pricing optimization, and business model diversification through OEM and licensing partnerships. KT&G is targeting revenue growth of 3% to 5% and operating profit growth of 6% to 8% while maintaining a total shareholder return of at least 100%, supported by a dividend payout ratio of 50% or higher and potential share repurchases.
BlackRock purchased 68,646 shares of South Korea’s KT&G today, according to The Korea Herlad, making it one of KT&G’s largest shareholders, behind IBK Industrial Bank of Korea and the National Pension Service. According to regulatory filings, BlackRock, the world’s largest asset manager, now has total holdings in KT&G that top 5.91 million shares, or 5.01% of the tobacco and consumer goods company. Korean rules require investors crossing the 5% ownership threshold to disclose their positions to financial authorities and the Korea Exchange.
KT&G shares rose after the disclosure, reaching an intraday record of 153,900 won ($106.19) and closing at an all-time high of 152,900 won ($105.50). The company is scheduled to report earnings on February 5, with market forecasts projecting annual sales of 6.53 trillion won ($4.5 billion), up 10.6% year over year, and operating profit of 1.37 trillion won ($945 million), an expected increase of 13.3%.